COMMERCIAL REAL ESTATE

Russian Connection: At last weekend’s summit between President Clinton and Russian President Boris N. Yeltsin, the two leaders referred to their relationship as a “partnership.”

Vitaly Votolevsky hopes that Orange County developers and real estate investors will take that to heart.

The Russian developer, contractor and tourism promoter concluded a one-month stay Tuesday in Orange County.

His visit included tours of strip malls, a San Diego single-room occupancy housing complex and South Coast Plaza in Costa Mesa. Everything is overbuilt here, he said, but just the opposite is true in his hometown of St. Petersburg.

On Monday, he met with half a dozen potential investors at Sperry Van News Investment Real Estate in Newport Beach, where he had spent time observing private enterprise skills.

The meeting gave him a chance to make his pitch that now is as good a time as any to invest in his homeland, even with its political turmoil.

“Boris keeps coming up,” said managing partner Mark Van Ness, referring to the shaky situation of Russian President Yeltsin. “But we see only the most volatile aspects of it. It doesn’t seem as volatile to the people there.”

Investment opportunities in St. Petersburg include hotels, office buildings and apartments, many of which have added 50% to 100% to their value since they were built in the past two years, Votolevsky said.

A 100-unit low-end condominium complex was recently built at a cost of $350,000. It sold for $650,000, Van Ness said.

Votolevsky compares the situation with that of Mexico, once taboo for real estate players but now a growing market for them.

“There is a misperception,” Votolevsky said. “People are afraid to invest money. They think only of the political situation. But it’s possible to make good business.”